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IPFS News Link • TAXES: State

Arizona's Lowest Flat Tax in Nation To Take Effect Next Year


Governor Doug Ducey today announced Arizona's surging economy has unlocked the state's historic flat tax package a full year ahead of schedule.

In a letter to Arizona Department of Revenue Director Robert Woods, Governor Ducey directed the department to implement the next phase of Arizona's 2.5 percent flat tax for tax year 2023, not 2024 as originally anticipated.

"It's time to deliver lasting tax relief to Arizona families and small businesses so they can keep more of their hard-earned money," the governor wrote. "This tax relief keeps Arizona competitive and preserves our reputation as a jobs magnet and generator of opportunity."

With enactment of the flat tax in 94 days on January 1, Arizona will have the lowest flat tax in the nation.